Humboldt County unemployment rate dips to 4.3% in May

The Humboldt County unemployment rate dipped to 4.3% in May, down from a revised 4.8% in April, according to data released Friday by the Employment Development Department.

In May, Humboldt County added 200 jobs.

While the declining unemployment rate is good news, it comes with a labor force that is continuing to contract - it dropped by 100 workers between April and May. The labor force in May dropped to 59,800, well below the 61,100 it was in May 2025, a 2.1% year-over-year decline.

A Public Policy Institute of California report from earlier this month notes that across the board labor forces are shrinking.

"There are a number of reasons for leaving the labor force - including retirement, starting school, caregiving responsibilities, and health limitations," the PPIC report noted. "There are about 141,000 fewer people in the state's labor force so far in 2026; roughly as many joined the labor force in each of the previous two years."

It notes there are no easy conclusions in looking at California's labor market.

"California's labor market is not sending one simple signal," the PPIC report stated. "The state has not experienced a sharp downturn, and neither unemployment nor underutilization rates have climbed much recently. However, data on unemployment duration and exits from the labor force suggest that for many Californians, the path back to work is bumpier than it was a few years ago."

Cal Poly Humboldt's recently released Economic Index for May sees a similar trend.

"Unemployment claims are down and help-wanted ads are up - positive predictors for growth," a recent report from Cal Poly Humboldt on its Economic Index stated. "However, building permits are down, signaling a possible slowdown in future economic activity."

Erick Eschker, a Cal Poly Humboldt economics professor and director of the Humboldt Economic Index, noted that Humboldt County is relatively stable. Unlike the EDD, Cal Poly Humboldt's economic analysis is seasonally adjusted, which means it takes into account fluctuations - such as a downturn in construction in the winter because of the weather.

"Our county rate has bounced around a little bit, but it's at 4.6% which is down from last month at 4.7%, seasonally adjusted," he said Friday. "A year ago was 4.8%, so our unemployment rate is following really the state and the U.S. rates, as far as not bouncing around all that much."

Looked at on a broader scale, he added, Humboldt County's unemployment rate is "still pretty low." He noted the recent increase in jobs posted on Craigslist - the source of Cal Poly Humboldt's data - is a good sign.

California added 3,100 jobs in May. The statewide jobless rate was unchanged at 5.3%, the EDD reported.

But the job market in California remains frail, said Michael Bernick, an employment attorney with law firm Duane Morris and a former director of the state EDD.

"California job growth lagged behind the national growth rate in May as it did in April," Bernick said. "Only gains in healthcare and hospitality prevented the state from showing a net loss of jobs in the month."

Ruth Schneider can be reached at 707-441-0520. The Bay Area News Group contributed to this report.

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